Being an independent consultant in Canada means working as a self-employed professional who provides specialized expertise to businesses or individuals on a contract basis. Unlike traditional employees, independent consultants operate as their own business entities, often working with multiple clients at once.
This often means that you’re the employee of your own legally established business.
If you’re an independent consultant, you’re not paid a regular wage like a contract employee. Your business will enter into an agreement with Raise, your business invoices for your services, and Raise then pays your business for its services. Our invoice terms are net 30.
As you’re not an employee, taxes and other payroll deductions will not be automatically withheld from your paycheck. Your business is responsible for deductions such as income tax, Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums from your pay. This also means that Raise does not provide a T4 slip for you to file y our income tax return.
There are certain tax advantages to working as an Independent Consultant; we advise you to speak to an accountant to learn more.